According to this article, the United Kingdom (UK) and Japan are technically in a recession. They’re estimating a second quarter of contraction in late 2023, which is considered a recession. Tik tok, the party is growing late and it’s almost time to go home and nurse a hangover. Remember when I wrote “The Recession is Canceled! Party On!” and “The Magnificent Seven Stocks & Their Pending Crash”? Things have gone to high for too long and we’re way overdue for a correction. Read more...

Here’s one from the “if it has AI inside, it’s going to the moon” file. SMCI hit an all time high yesterday after hitting successive all time highs. It’s going to open probably higher than its close at $880.55 yesterday, but is it still a buy? According to Yahoo Finance it might be: On the other hand, it’s possible that the company is still in the early stages of benefiting from powerful long-term demand tailwinds thanks to AI. Read more...

I came across the biggest red flag I’ve seen in a long time on Yahoo Finance this morning. Bullish investors drop recession calls for the first time since April 2022. Oh, for F’s sake. This is the first time since April 2022 that fund managers have dropped their calls for recession, the survey showed. “Expectations for strong macro and no recession keep investors in the “soft landing” camp at 65%, with “hard landing” probability fading to just 11%,” BofA said. Read more...

It looks like the Generative AI market finally caught up with ARM, or rather the Momentum and Trend Bros got a hold of it. Yes, ARM hit a new all time high and that’s exactly what I want to see after an IPO. ARM IPO’d back in September 2023 and starting a slight upward trend in November. Add in the NVDA craziness and “AI this” and “AI that”, it’s no wonder ARM is going to the moon. Read more...

AH yes, light the house on fire and then call the fire department to put it out. Then complain when the fire gets out of control and starts burning down your neighborhood. I’m talking about the Mortgage Backed Security (MBS) mess in 2007/2008 and how the big banks gambled with our economy and almost took down the entire global financial system. Jamie Dimon, head of JP Morgan, agreed to pay $13 billion dollars to settle claims that it had misled investors in the years leading up to the financial crisis (via Vanity Fair). Read more...

David Einhorn, President of Greenlight Capital is whining about the millions of passive investors out there. They’re mucking up his returns! How dare they! (Greenlight) It is no longer going to pay 10 times earnings for a stock expecting earnings to get 15% better and receive a 13-times-earnings multiple allowing Greenlight to make 50% over a year and a half. That’s because with the rise of passive investing, “there’s nobody who is going to pay attention to notice the earnings were 15% better … if nobody notices, nobody’s there, nobody’s going to buy, nobody’s going to care,” Einhorn said. Read more...

I was reading the news this morning about how AMD is getting more investor’s interest as a competitor to NVDA’s GPU chips. This always happens when a momentum/trend darling gets too expensive or too crazy for the smaller boys to handle. NVDA is in squarely in the hands of the big boy gamblers and if you can’t run with them dawgs, you better go find something else to trade. Hello AMD! Read more...

I have no ill will toward Cathie Wood or her Ark funds. I just find it funny that a lot of the high profile traders and investors tend to blow up. Sometimes by a lot. Ark Invest was all the rage in 2020 and 2021, when its concentrated bets on highly speculative technology companies paid off in a big way thanks to low interest rates and a boom in risk appetite among retail investors. Read more...

Terra Tech (TRTC) is one of my most favorite mistakes. I invested $1,000 many years ago into this company with the hopes of it turning my investment into more green dollars, if you will. Did it do that? Not at all; it’s been my biggest loser to date and ever. My investment went up in a cloud of smoke. I bought over 200 shares of TRTC for about $5 back on January 18, 2018. Read more...

If it’s not the Fed rate cuts, then it’s NVDA’s tear higher. It’s going to the moon as r/WallStreetBets people would say. The good news is that it’s trading at an all time high and I expect it to break the $700 price level before it takes a breather, but I don’t know. Who really does? NVDA is having a field day because because all the big tech companies (META, MSFT, etc) and anyone else who relies on GPUs for Generative AI is buying their products. Read more...